Q.211
Medium
Which regulation requires banks to maintain a minimum Statutory Liquidity Ratio (SLR)?
A
The Banking Regulation Act, 1949
B
The Reserve Bank of India Act, 1934
C
The Negotiable Instruments Act, 1881
D
The Payment and Settlement Systems Act, 2007
Correct Answer:
B. The Reserve Bank of India Act, 1934
Explanation:
Section 24 of the RBI Act, 1934 mandates that banks maintain a minimum SLR of not less than 18% of their net demand and time liabilities (NDTL).
Q.212
Medium
What is the concept of 'Repo' in banking and financial markets?
A
A repossession of assets by banks
B
A sale of securities with an agreement to repurchase at a fixed price and date
C
A reporting requirement for NBFCs
D
A replacement of loan officers
Correct Answer:
B. A sale of securities with an agreement to repurchase at a fixed price and date
Explanation:
Repo (Repurchase Agreement) is a short-term borrowing mechanism where securities are sold with an agreement to repurchase them at a higher price on a specified date.
Q.213
Hard
Under Basel III, what is the minimum Common Equity Tier 1 (CET1) capital ratio required?
Explanation:
Basel III requires a minimum CET1 capital ratio of 4.5%, with an additional capital conservation buffer of 2.5%, bringing the total to 7%.
Q.214
Easy
What is the primary objective of the Pradhan Mantri Mudra Yojana (PMMY)?
A
To provide retail deposits to individuals
B
To provide collateral-free loans to micro and small enterprises
C
To regulate non-banking financial companies
D
To encourage foreign direct investment
Correct Answer:
B. To provide collateral-free loans to micro and small enterprises
Explanation:
PMMY aims to provide collateral-free loans to micro and small enterprises for business purposes, with loans up to Rs. 10 lakh under the scheme.
Q.215
Easy
As per the latest RBI guidelines (2024), what is the Statutory Liquidity Ratio (SLR) minimum requirement for Scheduled Commercial Banks?
Explanation:
As of 2024, the SLR minimum requirement is 18% of the bank's Net Demand and Time Liabilities (NDTL).
Q.216
Easy
Which government scheme aims to provide social security coverage to unorganized workers?
A
Pradhan Mantri Jeevan Jyoti Bima Yojana
B
Pradhan Mantri Suraksha Bima Yojana
C
Pradhan Mantri Rashtriya Swasthya Suraksha Mission
D
Atal Pension Yojana
Correct Answer:
A. Pradhan Mantri Jeevan Jyoti Bima Yojana
Explanation:
PMJJBY provides life insurance coverage to unorganized workers at minimal premium, protecting their families.
Q.217
Medium
What is the current Reverse Repo Rate as per the latest RBI monetary policy (2024-2025)?
A
5.75%
B
6.00%
C
5.50%
D
6.25%
Explanation:
The Reverse Repo Rate is typically 25-50 basis points below the Policy Repo Rate. Check latest RBI announcements for exact current rate.
Q.218
Medium
Under which Act does the RBI regulate the functioning of payment systems in India?
A
Banking Regulation Act, 1949
B
Payment and Settlement Systems Act, 2007
C
Reserve Bank of India Act, 1934
D
Foreign Exchange Management Act, 1999
Correct Answer:
B. Payment and Settlement Systems Act, 2007
Explanation:
The Payment and Settlement Systems Act, 2007 grants RBI the authority to regulate and oversee payment systems in India.
Q.219
Medium
Which of the following best describes 'Liquidity Coverage Ratio (LCR)'?
A
Ratio of liquid assets to total assets
B
Ratio of high-quality liquid assets to net cash outflows over 30 days
C
Ratio of advances to deposits
D
Ratio of equity to total liabilities
Correct Answer:
B. Ratio of high-quality liquid assets to net cash outflows over 30 days
Explanation:
LCR is a Basel III requirement ensuring banks maintain sufficient high-quality liquid assets to survive a 30-day liquidity stress scenario.
Q.220
Medium
What is the primary objective of the Insolvency and Bankruptcy Code, 2016?
A
To regulate interest rates on loans
B
To provide a time-bound resolution mechanism for stressed assets
C
To increase bank lending to MSMEs
D
To promote digital banking services
Correct Answer:
B. To provide a time-bound resolution mechanism for stressed assets
Explanation:
IBC aims to provide a unified mechanism to resolve corporate insolvency through a time-bound process of 180 days (extendable to 270 days).
